Banks, regardless of size, are capitalizing on new cloud technologies in order to remain competitive. This shift in IT strategy delivers the cost-savings, flexibility, efficiency and compliance necessary to facilitate the digitalization of the banking industry and keep up with the needs of the changing industry dynamics and new compliance regulations.
By utilizing cloud-based IT resources, including storage, hosting, disaster recovery and backup to name a few, financial institutions of all sizes are able to reap many benefits that help them remain competitive.
Benefits of Cloud Computing for Banks
With cloud computing, banks no longer need to invest in proprietary infrastructure. Instead, organizations can access and maintain their data through their provider’s cloud environment. This cuts down on both the up-front capital costs associated with hardware along with operational costs in the form of power, cooling, maintenance, etc.
Rather than pay a flat fee to keep systems up and running, cloud providers offer a variety of metered, pay-per-use options.
With cloud computing, staffing costs are also greatly reduced. Internal teams no longer must worry about hardware refreshes or server and software updates, freeing up their time to focus on what matters most: their business. Cost savings can also be reinvested into the business to increase headcount, boost wages and drive product innovation.
Flexibility and Scalability
With a move to the cloud, banks can respond quickly to changing market, customer and technological needs. If needs change, it is easy to scale cloud capacity up, drawing on the service’s remote servers while also being able to decrease usage if need-be. Banks are also able to maintain their competitive edge with the ability to rapidly deploy new projects and quickly take them live.
Cloud technologies boost security in ways that on-premise systems are unable to. Cloud computing can provide greater security compared to traditional platforms, especially for smaller banks that have limited IT budgets. Banks typically use a patchwork of solutions for their core processes, which due to the need to provide ever more internet and mobile access to clients, as well as flexibility to the banks’ workforce, becomes more exposed to cyber threats. Cloud platforms are developed with connectivity in mind and by specialized companies with very little legacy constraints, which makes them more secure. Encryption services also provide additional layers of data encryption for applications that cloud service providers do not control, thus keeping data secure at all times, wherever it is stored. Finally, with strict protocols and security certifications like SOC2 and ISO2001 built into many services, banks can ensure the cloud is accessed and enabled securely for any solution provider they work with.
Simply put, cloud computing provides a high level of redundancy, recovery and back-up at a lower price than traditional managed solutions. Cloud technologies provide a high level of data protection, fault tolerance, and disaster recovery, providing a more reliable business continuity solution due to the distributed nature of storage and processing, the ability to shift data more quickly and the remote accessibility of the cloud in the event of a disaster.
ColoSpace: New England’s Most-Trusted Banking Cloud Provider
In the age of banking digital transformation, cloud technology can deliver the total package: quick deployment and faster go-to-market innovations at a fraction of the cost of on-premise, while maintaining security and compliance standards. These benefits have also put small, local banks and credit unions on a level playing field with the big banks, who are struggling to keep up as they are being bogged down by legacy systems and silos.
ColoSpace has been a trusted advisor to consumer banks for over a decade. As a result, our suite of Cloud, Data Center and Managed IT Services have been designed from the ground-up to assure that consumer banks remain competitive in today’s market.